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Student MedicsSun, 25 Jun 2017 22:08:57 +0000en-UShourly1https://wordpress.org/?v=4.8.1Most Effective Tips to help you get Approved for a Home Loanhttp://www.studentmedics.co.uk/most-effective-tips-to-help-you-get-approved-for-a-home-loan/
http://www.studentmedics.co.uk/most-effective-tips-to-help-you-get-approved-for-a-home-loan/#respondSun, 25 Jun 2017 21:58:34 +0000http://www.studentmedics.co.uk/?p=12If you are in the process of trying to get a home loan, it is important that you know about some of the best tips for getting one. This type of loan can be difficult for some people to get, and it’s crucial that you do everything you can to increase your chances of being approved.

Check your Credit Score

The very first thing that you will need to do when it comes to getting a home loan is to check your credit score. Your credit rating will play a large part in determining whether or not you get approved for this type of loan, so you will therefore need to make a point of finding out what it is. You can get a copy of your credit report online within a matter of minutes, and it’s important that you do so. Take a long hard look at your credit report to make sure that there aren’t any things on it that shouldn’t be. You could potentially improve your credit score by getting erroneous items removed from it.

Start Saving your Money Early on

The best thing that you can do when it comes to getting a home loan is to start saving your money early on, because you are going to need it. The last thing you want to do is to go to a lender with little to no cash, because you won’t get approved. The more money you are able to put down up front, the better your chances are going to be of getting approved for a home loan. Be patient and take as much time as necessary to save a decent amount. Buying a house is expensive, even when you are financing it.

Don’t quit or change jobs when buying a house

While this may seem obvious to some, you might just be surprised at how many people change jobs or even quit their job without so much as another offer on the table while going through the process of buying a new home. You will want to stick with your current employer throughout this process, because the last thing you want is to for your cashflow to stop during this time. A lender will approve you based on the information you have provided in your application, and that includes your job/income.

Pay down your debt and avoid any new debt

You will also want to make a point of paying down the current debt you have and avoiding any new debt, because new debt will only serve to hurt your chances of getting the loan you so desperately want. While you don’t need to have a zero balance on your credit cards to get a home loan, it’s always a good idea to keep your debt to an absolute minimum. The ideal situation is to have no outstanding debt at all when going about applying for a home loan, though this may not be possible depending on your current financial situation.

Get Pre-Approved for a Mortgage

You will also want to get pre-approved for a mortgage loan before you even start looking at houses with your significant other. By getting pre-approved you will know where you stand when it comes to your chances of actually getting approved for the loan once you have found your dream house. The entire pre-approval process is very simple. The first thing you need to do is contact a lender and then submit your financial and personal information. Next you will need to wait for a response. You should hear back fairly soon after submitting all the required information.

Know what you can Afford

It’s a good idea to have a firm understanding of what you can and cannot afford when shopping for a new home. Also, don’t let lenders tell you how much you should spend on a mortgage loan. You will need to take the time to crunch the numbers and determine this for yourself. Once you have done this you will know what size loan you can really afford to take out. The last thing you want to do is to take out a loan and struggle to pay it off from month to month.

]]>http://www.studentmedics.co.uk/most-effective-tips-to-help-you-get-approved-for-a-home-loan/feed/0Essential Steps for Building Credithttp://www.studentmedics.co.uk/essential-steps-for-building-credit/
http://www.studentmedics.co.uk/essential-steps-for-building-credit/#respondSun, 25 Jun 2017 21:57:37 +0000http://www.studentmedics.co.uk/?p=10These days having a healthy credit score is more important than ever, so you will therefore want to learn how to start building your credit the right way. There are certain steps that you should follow to do this, and you will need to know what they are. The more positive credit you have, the easier it will be to get a home or auto loan and even the job you want.

Apply for a Secured Credit Card

If you are starting to build your credit from the ground up, you will first want to apply for a secured credit card. This type of card is backed by a cash deposit that you make upfront. The deposit amount for these cards is typically the same as the credit limit you are given. You will be able to use one of these cards like any other sort of credit card—you purchase things, make a payday on or before the due date, and get charged interest if you don’t make the payment in full on time.

Apply for a Credit-Builder Loan

A credit-builder loan will help you do exactly as the name implies, which is obviously to build up your credit. The money that you borrow with this type of loan is held by the lender in an account and isn’t released until you have paid it back in full. It is sort of a forced savings program, and all of the payments that you make or don’t make are reported to credit bureaus. A lot of credit unions and community banks offer these loans, and you will certainly want to at least think about taking one out in the near future.

Get a Co-Signer

You can get a loan or even an unsecured credit card with the help of a co-signer. It is important that the co-signer understands how much money they will potentially have to pay if you are not able to pay it back for whatever reason. You will find that a co-signer can be very helpful when it comes to building your credit, but you will need to find someone you are close to who will be willing to take the risk.

Become an authorized user on another person’s credit card

One of the lesser known ways to establish your credit is to become an authorized user on a friend or family member’s credit card. As an authorized user, you will have full access to a credit card and you’ll be able to start building your own credit history. The great thing about this is that you enjoy all of the benefits with the responsibility of having to pay for any of the charges.

Get credit for the Rent you Pay

It’s also a good idea for you to get credit for the rent that you pay each month. Rent-reporting services like Rental Kharma will take a bill you have paid and put it on your credit report. This can help you out a lot when it comes to building a positive credit history. It is important to keep in mind that not every credit score takes these payments into account, but there are some that do. You really have nothing to lose by doing this, so it’s highly recommended that you start looking into it.

Start practicing good spending habits

You will definitely want to make a point of practicing positive spending habits as early on as possible, because otherwise you could end up falling into a pit of debt and bad credit rather quickly. Make sure to keep your credit utilization as low as possible. Utilization is your balance when compared to your limit. It’s a good idea to pay in full each month, but don’t ever go over 30% of your credit limit. Also, make sure check each of your credit reports on an annual basis for any errors or discrepancies.

There are plenty of different ways to go about establishing credit for yourself, and you will need to take advantage of as many of them as possible. The more effort you put into establishing positive credit, the more you will benefit in the future. In the end you will be very glad you decided to take a proactive approach to building credit.

]]>http://www.studentmedics.co.uk/essential-steps-for-building-credit/feed/0Deciding Which Loan will Best Meet your Needshttp://www.studentmedics.co.uk/deciding-which-loan-will-best-meet-your-needs/
http://www.studentmedics.co.uk/deciding-which-loan-will-best-meet-your-needs/#respondSun, 25 Jun 2017 21:56:23 +0000http://www.studentmedics.co.uk/?p=8There are a lot of different types of loans that you will have to choose from, and some of them will be able to meet your specific needs better than others. The more time you take to do this research, the better of a decision you will be able to make. It’s important to remember that you don’t want to select just any kind of loan.

Conventional Loans

There are “conventional loans,” which are loans that are backed by government agency, such as the U.S. Department of Veterans Affairs. These loans come with the least amount of risk, and many different financial institutions give them out. It is important that you take the time to look into this particular option.

Conforming Loans

A “conforming loan” is one that conforms to the guidelines laid out by Freddie Mac and Fannie Mae. The primary guideline of these loans is the maximum amount that can be borrowed. The maximum borrowing amount varies greatly depending on the location of the applicant. If you live in a high-income area, you may be able to borrow more than someone who is lives in a lower-income area.

Non-Conforming Loans

A non-conforming loan does not adhere to the guidelines set forth by Fannie Mae and Freddie Mac. If you need a loan amount that is on the larger side, you will most likely want to take out a non-conforming loan. A jumbo loan is one example of a non-conforming loan. It’s important that you take some time to look into these different types of loans so you can get a better sense as to what each one is all about.

Secured Loans

A secured loan is one that requires that you put up some sort of collateral. Whether it is your house or car, you will need to be willing to sacrifice one of your more valuable possessions in the event that you cannot pay the loan off for whatever reason. The interest rates on these loans are typically low, which is one of the best things about them. The higher the valuable of your property is, the more you will be able to get from the loan. Your credit score/history will also be taken into consideration with this type of loan. If you are not able to put up any valuable possessions as collateral, chances are you will not be approved for the loan.

Unsecured Loans

An unsecured loan is one that is not backed by any type of collateral. One of the reasons that so many people like these loans is because they don’t need to risk losing any of their property if they are unable to pay it back. It is important to keep in mind that the interest rates with these loans are typically higher though. If you have a good steady income and great credit, an unsecured loan can be a great option for you.

Open-Ended Loans

Open-ended loans are also not backed by any sort of collateral, so the interest rate and size of the loan are determined entirely by your income as well as your credit history. If you have a great credit score and sufficient income on a regular basis, your chances of getting this type of loan is pretty good. The lender will approve you for a certain amount of credit based on a percentage of your home’s overall appraised value, minus the amount you still owe on the mortgage. The total acts as a credit line that you can borrow from, pay back and borrow from again.

Closed-ended Loans

You cannot borrow from a closed-ended loan again like with mortgages or student loans. The loan decreases with each payment you make. If you desire more credit, you will need to apply for an entirely new loan. If you need a set amount of money and nothing more, this is a good borrowing option that you should look into.

There are many different types of loans that you can take out, and it’s highly recommended that you do your research before deciding on one in particular. The more information you gather on these loans, the better your chances will be of getting exactly what you need.